Husband and wife meeting with loan officer

To help determine the best loan program for you, consider the following:

  • How important is payment certainty? If knowing that your payment for principal and interest will be the same every month is important, you may want to consider a fixed-rate mortgage.

  • How important is building equity in your home? If building equity rapidly is a factor, you may want to consider a shorter amortization period, such as a 15-year, fixed-rate mortgage.

  • Do you anticipate increasing or stable income? If income growth is anticipated, you may want to take advantage of a lower start rate with an adjustable-rate mortgage.

Other factors to consider include:

  • Your ability to qualify for a mortgage at market rates for the loan amount selected

  • How long you expect to live in your new home

  • The possibility of rate changes

  • Various up-front cost options